Tether and Cantor Fitzgerald Collaborate, Opening a New Era of Crypto Finance?

Updated

May 7, 2025

Gambar Tether and Cantor Fitzgerald Collaborate, Opening a New Era of Crypto Finance?

Jakarta, Pintu News—In 2021, Tether, the company behind the leading stablecoin Tether , took a major step by partnering with Cantor Fitzgerald, a Wall Street brokerage giant.

This partnership changes the market’s view of Tether and marks a new chapter in the integration between traditional finance and crypto.

Check out the full news below!

Strategic Partnership with Cantor Fitzgerald

Since the beginning of the partnership, Cantor Fitzgerald has been the primary depository for Tether’s US Treasury reserves. By the end of 2024, Cantor Fitzgerald had managed about 80% of Tether’s $132 billion in collateral. A few months later, that figure increased to 99%.

According to BeInCrypto, Cantor Fitzgerald’s presence as the custodian of this asset provides answers for those who doubt the existence of Tether reserves. Cantor Fitzgerald not only acts as an asset custodian. At the end of 2024, the company bought 5% of Tether shares worth around $600 million.

Although Howard Lutnick, former CEO of Cantor Fitzgerald, has relinquished his interest in the company to serve as the US Secretary of Commerce, his family’s involvement has been maintained, with Brandon Lutnick now serving as Chairman of Cantor Fitzgerald.

Also read: Ripple’s Performance Surges in Q1 2025, What’s the Main Factor?

SoftBank Adds Global Legitimacy

Proud to play a role in the extraordinary partnership between @Tether_to and @SoftBank – two visionary companies shaping the future.

Twenty One, which will combine with $CEP, was formed to tap into the accelerating global demand for Bitcoin and its growing institutional…
— Brandon Lutnick (@Brandonlutnick) April 23, 2025

In April 2025, SoftBank took an essential step by joining this partnership and launching 21 Capital, a new entity focused on Bitcoin , with an investment commitment of $900 million.

Tether and Bitfinex, under iFinex, hold the majority stake, while SoftBank is a minority shareholder. SoftBank’s involvement, known for its large and diverse investments, indicates that it conducted extensive due diligence before joining.

SoftBank’s presence adds global confidence and opens up a vast network that can expand Tether’s reach. With SoftBank’s worldwide reputation and influence, Tether has access to greater resources and opportunities worldwide.

Also read: Binance Founder Changpeng Zhao Reveals 4 Altcoin Sectors that will Explode!

21 Capital: Highlights of Tether and Cantor Fitzgerald Partnership

All these alliances led to the formation of 21 Capital, a new investment vehicle that will be listed on Nasdaq under the ticker symbol “XXI”. Jack Mallers, a high-profile Bitcoin entrepreneur, will lead the company as CEO.

Taking the company public marks a significant step for Tether’s institutional aspirations, with the inevitable SEC rules, quarterly disclosures, and analyst questions. Critics who previously attacked Tether for its lack of transparency will now have to find new material as some of Tether’s operations will be under the spotlight of public markets.

Although Tether’s stablecoin business did not fully merge with SPAC, the significant BTC treasury presence at 21 Capital-42,000 coins at launch-will be a window into the broader Tether ecosystem.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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